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1 206 HALF YEAR RESULTS PRESENTATION CAPRAL LIMITED

2 GENERAL INFORMATION Important Notes This presentation includes forward-looking estimates that are subject to risks, uncertainties and assumptions outside of Capral s control and should be viewed accordingly. Darwin Cairns Trading EBITDA is the Statutory EBITDA adjusted for significant items that are material items of revenue or expense that are unrelated to the underlying performance of the business. Capral believes that Trading EBITDA provides a better understanding of its financial performance and allows for a more relevant comparison of financial performance between financial periods. These items are LME and Premium revaluation, and costs relating to restructuring that are non-recurring in nature. Townsville Mackay Kunda Park Bremer Park Gold Coast Springwood Trading EBITDA is presented with reference to the Australian Securities and Investment Commission Regulatory Guide 230 Disclosing non-ifrs financial information issued in ember 20. Wangara Welshpool Canning Vale Bibra Lake Extrusion site Warehouse/ Aluminium Centre Corporate office Austex Dies Angaston Kilburn Laverton Penrith Minto Campbellfield Lynbrook Newcastle Rockdale Parramatta Erskine Park Hobart 2

3 OVERVIEW OF RESULTS SIX MONTHS TO JUNE 206 $0.0m Trading EBITDA $0.2m EBITDA in first half Trading EBITDA of $0.0m (205: $4.m) EBITDA of $0.2m (205: $2.6m) Volumes up 5% on H 205 Strong housing market driving volume increase Net Profit of $6.8m Net Profit after tax of $6.8m (205: $.5m loss) includes: - Depreciation of $2.9m - Finance costs of $0.5m - LME and Premium revaluation of $0.4m Housing market remained strong, industrial markets are improving Dwelling commencements on track to hit 220,000 YE Detached housing and medium density steady - High density (apartments) up 7% Non-residential building activity improved by 9% 2 Business conditions in the manufacturing, marine and transport sectors are showing signs of improvement Highly competitive environment Increased dumping measures against China were announced in 205 Investigation into dumping of aluminium extrusions from Vietnam and Malaysia has commenced by Anti-Dumping Commission Excess domestic extrusion capacity Safety performance remains key focus TRIFR³ of 6.7 at HY6 (HY5: 0.6) Ongoing focus on leading safety indicator management 3 See Important Notes (Page 2) 2 Source: BIS Shrapnel May 206 forecast 3 TRIFR is total reportable lost time and medically treated injuries per million work hours

4 FINANCIAL SUMMARY SIX MONTHS TO JUNE 206 H 206 H 205 Sales Volume ( 000 tonnes) Sales Revenue Trading EBITDA¹ LME Revaluation² 0.4 (.2) Other one off costs² (0.2) (0.3) EBITDA Depreciation/Amortisation (2.9) (3.5) EBIT 7.3 (0.9) Finance Cost (0.5) (0.6) Profit/(Loss) after Tax 6.8 (.5) 4 See Important Notes (page 2) 2 Included in other expenses

5 BALANCE SHEET REMAINS STRONG 6 months to Jun 6 Jun 5 EBITDA Positive operating cash flow driven by improved earnings Working Capital Finance Cost Equity Compensation Amortisation (5.9) (0.5) (0.) (0.0) (0.6) 0.3 Other (0.2) 0. Operating Cash Flow 3.5 (7.6) Capex Spend (.7) (.6) Increase/(rease) in Net Cash.8 (9.2) Jun 6 5 Jun 5 Net Assets Net Cash Franking Credits Accumulated unrecognised tax losses Intra month average net cash level $5.2m, $2.0m maximum net debt level Robust financial position 5 The finance facility is used for intra month funding Drawn Down Capral Finance Facilities Limit Jun 6 5 Jun 5 GE Revolver 60 Nil Nil Nil

6 METAL COSTS HAVE REMAINED STABLE IN 206 A$/kg Metal Cost (AUD - Quarterly Average) Metal costs reached multi-year highs in H 205 but collapsed during the second half of 205 Metal costs in H 206 have been stable with a small increase expected in H Q 203 Q 204 Q2 Q3 Q4 Q 205 Q2 Q3 Q4 Q 206 Q2 LME MJP Premium (Major Japanese Ports) Source: London Metal Exchange, Reserve Bank of Australia, Reuters 6

7 RESIDENTIAL CONSTRUCTION DRIVING STRONG MARKET MONTHLY UNITS 22,000 MONTHLY DWELLING APPROVALS AND QUARTERLY DWELLING COMMENCEMENTS RECOVERY STARTED IN 203. VERY STRONG MULTI-RES. DETACHED ANTICIPATED TO GROW AT SLOWER PACE THROUGH , , ,000 4,000 APPROVALS COMMENCEMENTS BIS Shrapnel forecast , , , ,000 4, , Source: ABS and BIS Shrapnel ¹ Source: BIS Shrapnel, ABS ¹ May 206 (2 Quarters Delayed) 7

8 ALUMINIUM EXTRUSION DEMAND HAS RECOVERED FROM CYCLICAL LOW LEVELS AND IS EXPECTED TO REMAIN STRONG 000 Tonnes PA ALUMINIUM EXTRUSION MARKET SALES VOLUME Forecast 85 (Based on BIS Shrapnel forecasts and GDP projections) Extrusion Market in 206 has grown and is expected to remain at these levels through 207 due to the pipeline of residential work The residential sector is strong with approvals exceeding 220,000 dwellings An increase in apartments relative to houses has increased the lag between approval and completion and reduced the intensity of aluminium extrusions 25 CAPRAL EXTRUSION PRODUCTION VOLUME Non-residential building demand increased by 9% Key industrial sectors (manufacturing, marine and transport) are showing signs of improvement 80 Note: Capral has an estimated 29% share of the Australian Aluminium extrusion sales volume New domestic extrusion capacity has been commissioned over recent years, including extrusion capability installed by traditional Capral customers Import extrusion market share has fallen to around 33% e Source: BIS Shrapnel year end 206 forecast (May206)

9 KEY STRATEGIC INITIATIVES BUILD On our strengths Widest aluminium product offer Large scale extrusion capability National distribution network Committed and experienced people OPTIMISE What we do Continue to reduce cost base Lean manufacturing drive to world class productivity Optimise the supply chain to reduce inventory levels GROW In the future Leverage our technical expertise with key customers Develop innovative new products and value-add opportunities Capitalise on positive anti-dumping outcomes 9

10 ANTI-DUMPING MEASURES HAVING A POSITIVE IMPACT The impact of the initial anti-dumping measures was modest Case won in 200 but the levels of duties imposed on Chinese imports were low Circumvention activities diminished the impact Response and Action A sustained campaign by Capral and others has resulted in significant reforms to federal legislation and anti-dumping methodology Continuation of measures review finalised in October 205. Anti-Dumping Commission found ongoing dumping by Chinese importers Increased anti-dumping measures were imposed for a further five years to 2020 Imports from China have declined, imports from Vietnam and Malaysia are rising Key issues being pursued New case initiated by the Anti-Dumping Commission against Vietnam and Malaysia in August 206 Continuing to interact with Government around strengthening the anti-dumping regime Continue to monitor and pursue anti-circumvention/non compliance activities 0

11 OUTLOOK Housing commencements are forecast¹ to be around 220,000 for the 206 year, up 3% on the strong 205 market. Detached housing steady, with multi-residential up 7% Extrusion market expected to remain strong through 207 due to pipeline of residential work Further material strengthening of the AUD above USD$0.75 will be a negative for local manufacturing and Capral s competitive position against imports Continuation of anti-dumping measures at higher levels should have a positive impact on Capral and other local extruders Capral expects to generate positive operating cash flow in 206, and be net cash positive at year end Full year EBITDA is forecast to be between $9m and $2m Given the relative low volatility in metal costs, Capral is not expecting a material difference between Trading and Statutory EBITDA² On this basis, and absent any unforeseen events, Capral would be in a position to consider a fully franked dividend. BIS Shrapnel May 206 forecast - two quarters delayed 2 See Important Notes (Page 2)